Mortgage Rates Drop To Nearly Two-Year Low
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. With last week's drop, rates are now at their lowest level since September 2017. Joel Kan, MBA's associate vice president of economic and industry forecasting, said the decline led to a surge in demand for loans. “With the 30-year fixed-rate mortgage at its lowest level since September 2017, purchase activity was more than 10 percent higher than a year ago,” Kan said. “Demand is still relatively strong, but there is likely restraint from some prospective buyers, driven by some economic uncertainty. Furthermore, the housing supply is still very tight for first-time buyers.” Despite those challenges, however, mortgage application demand was up almost 27 percent from one week earlier. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.